The investigation revealed several violations, including the failure to manage conflicts of interest, improper conduct related to meeting instructions, billing for undelivered services, neglecting fire safety obligations, and insufficient insurance arrangements for managed properties. Additionally, Michael Lee was found to have obstructed authorities during a site visit, further compounding the severity of the infractions.
Fair Trading Commissioner Natasha Mann emphasized the agency's commitment to reinforcing compliance across the strata industry, stating that such actions are necessary to maintain the integrity and trustworthiness of the sector. The revocation of licences serves as a stern warning to other strata management firms about the importance of adhering to legal and ethical standards.
In a related development, the NSW government is considering reforms that could reshape financial arrangements in strata insurance. A proposed ban on commissions paid to strata managers by insurers has sparked debate within the industry. Consumer advocacy groups argue that commission-based models undermine transparency and inflate premiums, while some strata management firms express concern about potential operational consequences.
For property owners, these developments underscore the necessity of due diligence when selecting strata management companies. Ensuring that management firms comply with legal requirements and maintain transparent practices is crucial in safeguarding the interests of property owners and preserving the integrity of the strata industry.
